Over the past few years, as the Board of Directors has focused on CFP Board's mission and the ways we might most effectively further that mission, it was clear that important discussions about financial planning are increasingly being held by different federal agencies and regulators. A move to Washington, D.C. is one possibility the Board of Directors has discussed at length for quite some time. There are so many people in Washington who are trying to define financial planning and direct policy toward financial literacy. We need to be part of those conversations and be in a position to help shape the direction of the conversation.

Last month we announced the decision to make the move to Washington, D.C. The Board feels that positioning CFP Board in the nation's capital will help the organization maintain its relevance and best protect the credibility and value of CFP® certification.

Last month we also announced the selection of a new CEO for CFP Board: Kevin R. Keller, CAE. Kevin comes to CFP Board after 16 years at the Association for Financial Professionals (AFP), where he served as senior vice president and chief operating officer for the past seven years. Kevin's expertise in the area of certifications for financial professionals is a perfect fit for CFP Board, and the Board of Directors could not be more happy that Kevin has agreed to join us.

Along with his experience in the financial services industry and his managerial expertise, Kevin also has experience moving an organization. He assisted the 1991 move of the AFP's predecessor organization to Bethesda, Maryland from Newton, Connecticut. The Board of Directors has every confidence in Kevin's abilities, and we look forward to CFP Board doing its best work under his leadership.

The Board of Directors will have its first full business meeting with Kevin at the end of this month, and that meeting will begin the process of working together to create a strategic plan and vision for CFP Board's future. Our interim CEO, Don I. Tharpe, has graciously agreed to continue his service with CFP Board to help get the transition underway.

As we look forward to CFP Board's next chapter Washington, D.C., I want to thank the Denver staff who have made CFP Board the organization it is today. CFP Board has seen steady growth largely due to the hard work of CFP Board's employees whose dedication and inspiration have nurtured the CFP® certification from a bold idea to an internationally-recognized mark of excellence. I truly appreciate their many contributions and their commitment to keeping CFP Board's operations running smoothly during the relocation.

Karen P. Schaeffer, CFP®
2007 Chair, Board of Directors
CFP Board

Bookstore shelves are always groaning with the latest batch of financial self-help titles. Some claim to be able to make you rich quick, others to get you out of debt. Some promise to disclose the secrets of smart investment, others to coach you through the economic challenges associated with divorce or starting your own business. Whatever financial situation you're in, there is a book out there somewhere to tell you how to fix it.

The tradition of penning personal finance books is very old. It started, like so many things in America, with Benjamin Franklin. In 1758, he published The Way to Wealth, a compilation of some of the money-related aphorisms contained in Poor Richard's Almanac over the previous 25 years. The Way to Wealth is the source of many sayings that are still current today, including "Early to bed, and early to rise, makes a man healthy, wealthy and wise" and "Keep the shop, and thy shop will keep thee." Franklin's financial advice is unusual, though, because he hardly ever refers to money. Instead, he talks about hard work, diligence, and frugality. With these qualities, he counsels, wealth is assured. "So what signifies wishing and hoping for better times," Franklin writes. "We may make these times better if we bestir ourselves. Industry need not wish . and he that lives upon hope will die fasting."

Since Franklin's day, financial self-help books have become a bit like diet books: They are in fashion for a season or two, then swiftly disappear into the discount bins. One book that has withstood the test of time, though, is George S. Clason's The Richest Man in Babylon.

Clason was born in Louisiana, Missouri in 1874. He founded the Clason Map Company of Denver, CO, and hit it big with the first road atlases of the United States and Canada. In the 1920s, he began writing a series of pamphlets about personal finance, which took the form of parables set in ancient Babylon, the place where money may have been invented. Banks, insurance companies and other financial institutions started distributing Clason's fables, and in 1926 he collected them into The Richest Man in Babylon. He died in 1957.

Clason is a worthy successor to Franklin. His stories are funny, familiar and studded with little aphoristic insights that make their lessons easy to remember. And like Franklin, he doesn't talk as much about making money as about managing it. No tale exemplifies this better than that of Arkad, the richest man in Babylon.

Arkad got his start in business as a humble scribe. One of his clients was Algamish, a famous and very aged money lender. In exchange for meeting a very tight deadline, Arkad convinces Algamish to reveal the secret of his wealth. Algamish does not do this with a series of clay tablets complete with pie charts and fancy graphics, the ancient Babylonian equivalent of a PowerPoint presentation. He does it in a single, simple sentence: "I found the road to wealth when I decided that a part of all I earned was mine to keep."

Arkad is nonplussed. "Is that all?" he asks. Is not all of what he earns his to keep, Arkad wonders? At this Algamish becomes annoyed, listing all the expenses - for food, shelter, clothing, etc. - that everyone must meet. Then Algamish intones words that sound as old as Babylon itself. "A part of all you earn is yours to keep," he says. "It should be no less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first."

Arkad takes this lesson to heart and tries to apply it to his financial life. He learns to live on less than he earns; he seeks investment advice from trusted professionals; and he makes smart investments with the 10% of his earnings that he saves. Eventually, Algamish dies and Arkad becomes the richest man in Babylon, advising the friends who now clamor for his financial advice: "Say to yourselves, 'A part of all I earn is mine to keep.' Say it in the morning when you first rise. Say it at noon. Say it at night. Say it each hour of every day. Say it to yourself until the words stand out like letters of fire across the sky."

Arkad sums up his financial philosophy in the "Seven Cures for a Lean Purse." If these rules seem obvious, they are. People lose common sense when they get dollars and cents. The Richest Man in Babylon has endured so long because Clason managed to encapsulate the basics of financial planning in a handful of simple, powerful maxims. Taken together, Clason's cures amount to the seven habits of financially astute people. Let those bookstore shelves groan, and lend an ear to George S. Clason:

1. Start thy purse to fattening. (Keep at least a tenth of your earnings for yourself.)
2. Control thy expenditures. (Stick to a budget.)
3. Make thy gold multiply. (Invest wisely.)
4. Guard thy treasures from loss by consulting with "wise men." (Hire thee a CERTIFIED FINANCIAL PLANNER™ professional!)
5. Make of thy dwelling a profitable investment. (Own your own home.)
6. Insure a future income. (Get your life insurance and pension arrangements in order.)
7. Increase thy ability to earn. (Continually improve your job skills to bolster your value in the marketplace.)

- James Geary

Financial awareness, like charity, begins at home. But when financial lessons aren't available at home, the local community can sometimes step in to help provide the necessary education. That's why the CFP Board has awarded grants to three organizations - the Wisconsin Women's Business Initiative Corporation, the Indian Valley Housing Corporation, and the Nokomis Learning Center - that are pioneering a community-based approach to teaching the basics of financial planning.

The Wisconsin Women's Business Initiative Corporation (WWBIC) focuses its efforts on the economically deprived areas in and around Milwaukee, which are among the poorest in the country. "Almost 70% of our clients live below the poverty line," says Barb Kueny, WWBIC's development director. "They are often female heads of household with a couple of kids, sometimes working two jobs." WWBIC is using the CFP Board grant to add a financial planning component to its existing programs in money management and business education.

WWBIC started out providing business education and access to capital to entrepreneurs, specifically women, minorities, and low-income individuals who want to start small businesses. That is still at the heart of its mission. The Start Smart program, for example, teaches the basics of business ownership, marketing, financing, and human resources management. The goal is for each participant to complete a draft business plan by the end of the 16-week course. "So many people came to [this course] with their personal finances in disarray that we started a financial awareness initiative as well," says Kueny. The Make Your Money Talk workshops - which show people how to budget, shop smartly, and develop personal savings plans, as well as open matched-savings Individual Development Accounts - are one of the results of the WWBIC's drive for financial awareness.

WWBIC clients are putting their money where their mouths are, too. Every WWBIC client who uses a loan to start her own business not only provides employment for herself, but creates an average of 3.4 jobs in the community, according to WWBIC estimates. They also share their newfound financial knowledge with family and friends, further extending the reach of WWBIC programs. Katherine Handy is a case in point. Armed with the lessons of Make Your Money Talk, Handy was able to buy her first home and start a day care business. Now she runs three day care centers and owns a four-unit apartment building to boot. She introduced her mother and sister to Make Your Money Talk - and now they are in the day care business, too.

The Indian Valley Housing Corporation (IVHC) serves a population similar to that of WWBIC, with one added complication: IVHC's clients are homeless. The IVHC used its CFP Board grant to hire an educator to provide financial planning information to the low-income, homeless and at-risk households in the Montgomery and Bucks counties of southeastern Pennsylvania. The educator works one-on-one and in groups with people in the homeless shelter and transitional housing units, covering everything from simple budgeting to preparing for eventual home ownership. "The challenge for our clients is that they have little money with which to work," says IVHC's executive director Karen Hosler Kispert. "Many are simply ignorant about wise consumer choices. They have spotty to poor financial literacy, and some don't even have bank accounts. Our goal is to help them earn more money, better manage the money they do have, and repair their credit ratings."

Debbra Fluck, the financial educator, tries to achieve these goals not just through education, but through collaboration as well. She helps clients negotiate with creditors, banks, and utility companies to pay off debts; she counsels them in developing budgets and completing tax returns; and she enrolls them in saving plans like IDAs and Roth IRAs. "She teaches clients how to track where every dollar goes," Kispert says. "Smokers see how much their habit costs; cable TV fans see how much their subscription costs. Gradually, people start to see alternatives to spending money on these kinds of thing."

Sally is one IVHC client who has started to see alternatives in a big way. Sally enrolled in the financial education program when she was homeless, with four children and a mother to support. She had a job, and her mother made minimal contributions from her Social Security income, but the family spent every penny that came in-and more. Sally bought MP3 players, insisted on designer clothes for the kids, and treated herself to expensive watches and jewelry. With the money from her income tax return, Sally told Fluck she was going to spend hundreds of dollars on a designer purse, or perhaps some shoes. To Sally's amazement, Fluck said, 'Fine.' Then she added: 'Where are you planning to cut your budget to absorb what you spend for the purse or shoes?' For the first time Sally understood the importance of budgeting, and started to take steps towards saving. IVHC intends to use its experience with the financial education program to compile a core curriculum of financial planning material specifically targeted at low-income families, which it hopes to share with other organizations working with similar populations.

Many Native Americans face the unique challenges of living with low incomes, too. The Nokomis Learning Center, an organization dedicated to the preservation of the history, arts, and culture of the Anishinaabe people in the Greater Lansing, Michigan area, is using a CFP Board grant to provide local Nations with the fundamentals of financial planning. In a series of quarterly workshops, participants learn the basics of everything from budgeting, saving, and investing to insurance and retirement planning.

Native Americans families in the area have a median annual income of around $16,000. To make the most of that money, they are encouraged to develop short- and long-term financial goals. Their progress towards those goals is monitored in one-on-one sessions and during the workshops. Nokomis's ultimate aim is to extend the workshops state-wide, perhaps even nation-wide, to address the special financial education needs of the Native American population. Nokomis, WWBIC and IVHC are powerful examples of what can happen when a community swings into action.

Read more about projects receiving funding through CFP Board's 2006 Financial Planning Grants program.

CFP Board to Relocate to Washington, D.C.

CFP Board recently announced plans to relocate to the nation's capital, after being situated for more than 20 years in the city of Denver. CFP Board will transition its business operations from Denver, Colorado to Washington, D.C. over the course of the next several months, with the move likely to be completed in the fourth quarter of 2007. The organization will remain fully operational during the transition.

Karen P. Schaeffer, CFP®, Chair of CFP Board's Board of Directors, said, "The financial planning profession and the people it serves are being significantly impacted by public policy developments and trends in the financial sector that can best be monitored, influenced and managed from our nation's capital.

"Because these events have serious implications for all Americans, the organization feels it necessary to undertake certain strategic shifts to fulfill its mission to provide the public with the most competent and ethical financial planning advice available. We are convinced that having our headquarters in Washington, D.C. will enable us to more effectively serve the interests of the public as a whole," she said.

CFP Board has consistently advocated high professional standards for financial planners and emphasized its special responsibility to the public. With this in mind, the Board of Directors feels the organization must assert itself more vigorously as emerging policy debates in Washington influence the ability of consumers to make informed financial decisions.

"Sound and ethical financial planning advice is essential to the increasing number of Americans pondering retirement and other critical decisions that will impact their financial security and quality of life. As an organization dedicated to ensuring responsible financial planning for the public, a foothold in Washington, D.C. will allow us to advance our mission and promote our standards to protect the interests of Americans," Ms. Schaeffer added.

The Board's decision was based upon an ongoing review of how CFP Board could best respond to America's increasing need for CERTIFIED FINANCIAL PLANNER™ professionals. After careful study, the Board recently concluded that the future success of the organization was dependent upon its close proximity to regulators, policymakers, and other industry and credentialing organizations that influence debates within the industry.

CFP Board's transition plan will include steps to ensure that there is minimal disruption in service to those dependent on the organization's activities which includes over 54,000 certificants and more than 7,000 applicants each year.

The Board of Directors recognized the hard work and dedication demonstrated by its 40 Denver-based employees who have been instrumental in the growth of the organization and the success of the CFP® credential. Once the new staffing model has been formalized, current employees of the organization will have the opportunity to apply for a position in the Washington headquarters. The organization will provide compensation, support and incentives for those who choose not to exercise this option.

"We are extremely appreciative of the foundation CFP Board employees have provided to the organization through their contributions," said Ms. Schaeffer. "The Board would also like to express its gratitude to the city of Denver for its support throughout the years."

CFP Board Names Kevin R. Keller, CAE, as Its CEO

CFP Board has named Kevin R. Keller, CAE, as its chief executive officer, effective May 1, 2007. He replaces Don I. Tharpe, Ph.D., who has served as interim CEO since November 2006.

Mr. Keller comes to CFP Board with considerable organizational management expertise, particularly in the area of certifications for financial professionals. Previously, Mr. Keller served for 16 years at the Association for Financial Professionals (AFP) and served for the last seven years as senior vice president and chief operating officer. At AFP, Mr. Keller had management responsibility for programs and services for the 16,000-member organization. He led the organization's strategic planning process and enhanced and grew the Certified Treasury Professional credential.

"The Board of Directors in its search sought out the best combination of leadership and experience that would take the organization to the next phase in its development. In Kevin Keller, we discovered that and more," said Karen P. Schaeffer, CFP®, Chair of CFP Board's Board of Directors.

"Kevin possesses tremendous expertise and vision that will contribute greatly to CFP Board and those it serves as the organization approaches this critical juncture in its 22-year history," said Ms. Schaeffer. In his new role, Mr. Keller will provide leadership to the 40 CFP Board staff members. He will also strengthen ties with the organization's sister associations, ensure that CFP® certification remains the professional standard amidst the changes occurring in the financial planning profession, and serve as a resource for the nearly 55,000 CFP® certificants in the U.S. He plans to take an active role in the organization's efforts to increase the status, visibility, respect and credibility of the CFP® marks.

"I am looking forward to working in partnership with the leadership of CFP Board to realize the organization's mission of delivering competent and ethical financial planning to the public," said Mr. Keller. "CFP Board is a dynamic organization that has done great work. The CFP® certification enjoys an excellent reputation among the public, those within the profession and the credentialing community, and I'm enthusiastic about the opportunity to build on the organization's work in this regard."

Prior to joining AFP in 1990, Mr. Keller held senior staff positions at several associations. He has a B.S. and an M.S., both from Ohio State University. Keller earned his Certified Association Executive credential in 2000.

Trademark Tip

The CFP® marks must not be used within permanent or semi-permanent means such as business names, domain names, e-mail addresses or license plates. CFP® certification is not permanent, and an individual may become uncertified at any given time for various different reasons. CFP Board must take steps to ensure that if a person becomes uncertified, the public is not misled into thinking that person is still certified by CFP Board through the continued use of CFP Board's trademarks. To ensure that your use of CFP Board's trademarks is consistent with the approved guidelines, please review the Guide to Use of the CFP® Certification Marks or send your questions to CFP Board's Trademark Department at Compliance@CFPBoard.org or by fax to 303-860-7388.

2007 Financial Planning Clinic Brochures

CFP Board is pleased to make available a promotional brochure for the 2007 Financial Planning Clinic that will be held in Boston on August 4, 2007. These fliers highlight the free financial planning information that CFP® professionals will provide to those attending the Clinic and outline the other opportunities at the Clinic for consumers to learn about the benefits of financial planning. If you have contacts in the Boston area who can help distribute Clinic brochures to the general public, or if you have clients, colleagues, friends or family who would benefit from attending, we encourage you to request a supply of Clinic brochures by contacting CFP Board at clinic@CFPBoard.org or 800-487-1497. There are still volunteer opportunities for CFP® certificants interested in participating at the Clinic. To participate or learn more about the Financial Planning Clinic, visit CFP Board's Web site at: www.CFP.net/clinic